Correlation Between United Internet and Internet Thailand

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both United Internet and Internet Thailand at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining United Internet and Internet Thailand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Internet AG and Internet Thailand PCL, you can compare the effects of market volatilities on United Internet and Internet Thailand and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in United Internet with a short position of Internet Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Internet and Internet Thailand.

Diversification Opportunities for United Internet and Internet Thailand

-0.92
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between United and Internet is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding United Internet AG and Internet Thailand PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Internet Thailand PCL and United Internet is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on United Internet AG are associated (or correlated) with Internet Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Internet Thailand PCL has no effect on the direction of United Internet i.e., United Internet and Internet Thailand go up and down completely randomly.

Pair Corralation between United Internet and Internet Thailand

Assuming the 90 days trading horizon United Internet AG is expected to generate 0.28 times more return on investment than Internet Thailand. However, United Internet AG is 3.61 times less risky than Internet Thailand. It trades about 0.07 of its potential returns per unit of risk. Internet Thailand PCL is currently generating about -0.04 per unit of risk. If you would invest  1,584  in United Internet AG on September 17, 2024 and sell it today you would earn a total of  26.00  from holding United Internet AG or generate 1.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

United Internet AG  vs.  Internet Thailand PCL

 Performance 
       Timeline  
United Internet AG 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days United Internet AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Internet Thailand PCL 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Internet Thailand PCL are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Internet Thailand unveiled solid returns over the last few months and may actually be approaching a breakup point.

United Internet and Internet Thailand Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with United Internet and Internet Thailand

The main advantage of trading using opposite United Internet and Internet Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Internet position performs unexpectedly, Internet Thailand can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Internet Thailand will offset losses from the drop in Internet Thailand's long position.
The idea behind United Internet AG and Internet Thailand PCL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Transaction History
View history of all your transactions and understand their impact on performance
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like